February 4, 2002

Regular Board Meeting

Monday, February 4, 2002

Time: 2:00 P.M.

Place: Board Room

29300 Valley Center Rd.

Valley Center, CA 92082

The Valley Center Municipal Water District Board of Directors’ meeting was called to order by

President Broomell at 2:00 P.M.

Board members present: Directors Broomell, Polito, Aleshire, Stone, and Haskell. Staff members

present: General Manager Arant, General Counsel Cowett, District Engineer Jewell, Director of

Finance Jarrell, Director of Operations Dacus, Manager of Accounting Jeffrey, Project Engineer

Grabbe, Engineering Services Supervisor Gootee, Manager of Human Resources Hale and Board

Secretary Stetson. No spectators were present.

1.

2. Amendment No. 4 to the District’s Standard Specifications for the Construction of Water

Mains and Facilities:

Proposed revisions to the District’s “

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summarized below:

• Air and Vacuum Valve (air/vacs) Installations - Modification will limit conditions allowing

underground installations and conform with the State Health Department Standards

providing underground air/vac installations only when an aboveground installation is not

“practicable”. Modifications to the District’s specifications will include a security cover

for aboveground air/vac installations.

• Erosion and Sediment Control - Changes proposed address erosion and sediment control

on projects to conform with current requirements. Projects that include extensive grading

are required to have an erosion and sediment control plan included with the project.

• Asphalt Concrete Paving - Proposed additional section to provide details for asphalt

paving which is being required on more of the projects.

• Blow Off Installations - Clarification of pipe lengths to standard drawings W-6 and W-7.

With the recent freezes, many aboveground meter services needed repair. Literature to

provide information on protection of aboveground services will be distributed to customers

in the future.

3. Moosa Special Projects - Amendment to the Budget and Award of Construction Contract:

Negotiations with AmeriCon for a change order to complete the Moosa Special Projects work

was not successful. Therefore, the $75,000 settlement due the District by AmeriCon cannot

be applied as a credit to the Moosa Special Projects budget as originally anticipated.

AmeriCon has indicated the settlement will be paid once their claim against the pipe supplier,

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B&R Fabricators, is settled. As such, the $75,000 settlement from AmeriCon is now

considered a receivable. Project Engineer Grabbe noted that the District has retained

$47,000 from the original project at the Moosa Treatment Plant, and an agreement is in

process that will transfer these funds to the District. An amendment to the budget to allocate

an additional $75,000 for the Moosa Special Projects was recommended as the $75,000

receivable from AmeriCon had been included as a credit in the budget planning for these

projects.

Three bids were received for the Moosa Special Projects on January 30, 2002, in which the

lowest bid received was from Rich Construction at $215,426. A wide variance in the other

bids received ($290,785 and $445,317) can be attributed to prices from the electrical

contractors. The low bid from Rich Construction is approximately 10% over the engineering

estimate, but a lighting panel in the RAS pump station ($8,400) was added to the project and

had not been included in the original estimate. Staff recommended adoption of Resolution

No. 2002-05 to amend the budget for the Moosa Special Projects by appropriating an

additional $75,000 and award the contract to Rich Construction, Inc., the lowest responsible

bidder.

4. Via Cantamar Reservoir Site - Declare Property Surplus and Authorization to Sell the Surplus

Property:

Upon completion of the Via Cantamar Reservoir and recording of the Record of Survey Map

(No. 17200) for the parcel, it has been determined that 6.152 acres of the reservoir site is

excess property for the District’s needs, and that the District has no anticipated future need

for this excess property. Engineering Services Supervisor Gootee requested that the Board

declare the 6.152 acres as surplus and authorize staff to proceed with the sale of said surplus

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property. Upon declaration that the property is excess, the following steps would be taken

to accomplish its sale:

5. Estimates of the District’s Population:

Population data for the District’s service area from the federal census taken April 1, 2000,

indicates there were 7,432 occupied housing units with 20,773 residents with another

193 people in group quarters for a total population of 20,966. The average population per

dwelling was 2.82. In April of 1990, the population count was 5,911 housing units with a total

population of 17,541 and an average population of 2.97 per dwelling.

Director of Finance Jarrell reported that using the data from the recent federal census, the

District’s estimated population as of January 1, 2002, is 21,949 which is based on a dwelling

count of 7,939 with a per dwelling population of 2.80.

6. Valley Center-Pauma Unified School District Regional Occupational Program Advisory

Committee:

Linda Hale, Manager of Human Resources, reported that she is serving on the advisory

committee of the Valley Center-Pauma Unified School District Regional Occupational Center

and Programs (ROP). The ROP provides a school-to-career delivery system for high school

students and adults. The ROPs fill a critical need by offering career development and

workforce preparation to the approximately 80% of students who do not obtain BA/BS

degrees. Advisory committee members of the Valley Center-Pauma Unified School District

ROP will:

• advise on matters related to program activities, course content and competencies

needed,

• advise and/or authorize facilities and equipment,

• assist in long range planning,

• verify needs of local and regional job markets,

• ensure ROP curriculum meets current labor market demands, and

• serve as resources/liaisons in identifying other community/market resources.

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Opportunities may soon become available for the District to utilize participants in the ROP in

internship positions.

7. Strategic Plan Specific Goals and Budget Objectives for Fiscal Year 2001-2002 - Mid-Year

Status Report:

The mid-year status report on the “2001-2002 and 2002-2003 Strategic Plan Specific Goals”

and the “Budget Objectives for Fiscal Year 2001-2002" was reviewed. Of the 57 identified

projects, 42 are complete or completion anticipated by the end of the fiscal year. Twelve of

the remaining projects are under the control of an outside agency or party and 3 are multiyear

projects.

Director Polito inquired as to the status of the proposed recreational use of Lake Turner by

the organized youth groups. General Manager Arant responded that alternative funding

sources are being sought for expenses associated with planning, environmental and

permitting work. Funds will be needed for development of a facility plan, environmental

document and Major Use Permit which are estimated to cost from $50,000 to $100,000. An

application has been processed for Community Block Development Grant (CDBG) funds,

however, funds would not be available from this source if the facilities are not open to the

general public. A response on this application is expected in the fall. Funding proposals

were submitted to Bell Enterprises and the San Diego Foundation. To date, no response has

been received.

The consortium group members (Boy/Girl Scouts of America, Boys and Girls Club United and

YMCA of San Diego County, Palomar Branch) have not been in contact with the District

inquiring as to the status of the recreational use proposal, but each are currently involved in

major projects. Director Aleshire reported that he recently had seen Gary Wegener of the

Palomar Family YMCA and had, upon Mr. Wegener’s inquiry, provided an update on the

proposed recreational project.

Director Aleshire commented that alternative funding sources for the permitting process work

may be successful. If not, the Board will need to make a decision on funding the Major Use

Permit. Further, the consortium members may need to approach their Board members

regarding the possibility of providing funds.

Director Polito voiced that staff time spent pursuing this project should not continue

indefinitely. He suggested that the consortium members contact their respective Boards to

ascertain if a commitment for funding could be secured. Director Aleshire noted that another

option is the development of Lake Turner as a County park as proposed by Supervisor Horn.

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8. District Status Report, December 2001:

~ San Diego County Water Authority Regional Facilities Master Planning Process - Three

basic supply options are being examined which are: supply from the north

(Metropolitan’s system - $823.7 million), supply from the west (Metropolitan and

development of local desal. projects - $1.650 billion), and supply from the east (supply

from Metropolitan and construction of the Regional Colorado River Conveyance Facility -

$2.675 billion).

~ Metropolitan Water District’s Rate Structure - Metropolitan adopted its new rate structure

which includes the continuation of the Interim Agricultural Water Program. Also,

Metropolitan’s readiness-to-serve (RTS) charge will only be applicable on firm water

deliveries. As such, interruptible agricultural water deliveries will be exempt from the

RTS charge resulting in a reduction of the RTS charge collected from the District from

$1.8 million to approximately $300,000.

9. Shutdown of the 1

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11. Analysis of the San Diego County Water Authority’s Supply Options:

Genera Counsel Cowett stated that during an Authority presentation on its supply options,

its analysis of costs of the desalination project was based on per acre foot costs while the

proposed Regional Colorado River Conveyance Facility, “Bi-national Pipeline”, used capital

costs. As such, the analysis would not support an objective or scientific comparison of the

two alternative supply options.

Continuing to pursue the bi-national pipeline with an estimated cost of $2.7 billion, which does

not represent any new water supply, was questioned. Local desalination projects that are

estimated to cost $1.65 billion will bring in a new water source to the region.

12. Region 10 Meeting:

Director Aleshire reported that at a recent Association of California Water Agencies

Region 10 meeting, 5 recommendations were approved to be submitted to the ACWA Board.

They are:

1. Submit water related questions to the state’s candidates for governor with their responses

to be published in the ACWA News.

2. Develop and submit water related questions prior to the fall elections for all candidates

of state offices.

3. Propose that the money the state can divert from voter approved initiatives be limited.

4. ACWA oppose any water related bond issue that does not include development of both

surface and subsurface off stream storage.

5. Include desalination seminars at the ACWA Conferences.

13. Retirement Announcement:

Director of Finance Jarrell announced that, effective on August 12, 2002, he is planning on

retiring from the District. He noted that he has been an employee at the District since

February of 1977 and will be moving to Arizona where he will reside closer to his children.

He expressed his appreciation to the Board for their support. Mr. Jarrell was commended by

the Board for his many contributions to the District’s operations and ACWA programs.

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14. A Closed Session was called by President Broomell at 3:42 p.m. pursuant to:

• Government Code §54956.9(a), Conference with Legal Counsel - Existing Litigation.

Name of Case: Sweetwater Authority, et al. v. Dynegy, Inc., et al.

Superior Court Case GIC 760743

• Government Code §54956.9(c), Conference with Legal Counsel - Anticipated Litigation.

Number of potential cases: 1

• Government Code §54957.6(a), Employee Performance Evaluation

Title of Position: General Manager

The Regular Board meeting was reconvened at 4:48 p.m. No action was reported.

15.